Consider a Small Firm That Is Producing Winter Jackets

question 12

Multiple Choice

Consider a small firm that is producing winter jackets.It can lease an additional sewing machine for one month for $2400.With this additional machine,the firm can produce an additional 4 jackets during that time period that it sells for $550 each.Hiring the marginal machine adds ________ to the firm's profit and so it should ________ the machine.

• A)-$2400; not lease
• B)-$200; not lease
• C)$0; be indifferent as to whether to lease
• D)$200; lease
• E)$2400; lease

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Definitions:

Void After 90 Days

A phrase typically used on checks or legal documents indicating that the document or check is no longer valid if not used or cashed within 90 days from its date of issuance.

Stop Payment

A directive issued to a bank for the termination of a check or payment still pending processing.

Check Truncation

The process of converting a physical check into a digital form for electronic processing and payment.

Radical

An individual or viewpoint favoring drastic political, economic, or social reforms; often involves changes to the status quo.